Effective January 1, 2017
In a new law to go into effect January 1, 2017, a Living Trust may be utilized to protect assets from Medi-Cal claims for individuals dying after that date. This is a revolutionary law that elevates the advantages of a Living Trust in California to a new high. Previously, a Living Trust provided no protection from such claims - beginning next year it will.
A recent case in Tennessee reveals the problems that can arise with Financial Durable Powers of Attorney (DPA). In that case, mom designated her daughter to be her financial agent in the DPA. The daughter and her husband moved in with the mother to care for her and take responsibilities for her monthly expenses. The husband prepared her tax returns. Basically, the daughter and step-son had total control of her finances.
Elder Law Attorneys are frequently faced with a myriad of issues surrounding annuities and many times find it difficult to provide adequate answers for their clients.